Once the Counseling Session is completed and submitted,
confirmation information will display. You may print a copy for
your records. Saint Leo University will be notified of your
entrance counseling completion within 24 hours, if you recorded our
Master Promissory Note (MPN)
A Master Promissory Note (MPN) is the binding legal document you
sign when you apply for a student loan. It lists the conditions
under which you are borrowing and the terms under which you agree
to pay back the loan. It will include information on how interest
is calculated and the deferment and cancellation provisions. It is
very important to read and save this document, because you will
want to refer to it later when you begin repaying your loan.
A first-time borrower must complete a Master Promissory Note
(MPN). To complete the MPN you will need:
- Federal PIN (this is the same one used to electronically sign
- Your full legal name as it appears on your social security
- Permanent mailing address
- Driver’s License number and state (if applicable)
- Phone number
- Email address
- Name, address, and phone number for two references. These
should be people who have known you for at least one year –
preferably relatives – who live at different addresses from one
Completing a MPN takes about 20 –
- Click on “Sign In”.
- Complete the sign on, which includes providing your PIN
- This will open “Welcome to StudentLoans.gov Complete the
- Click on “Complete a Master Promissory Note”.
- The next web page asks you to select the type of loan.
- Complete the MPN. Read the instructions carefully.
- Once MPN is completed and submitted, confirmation information
will display. Print a copy for your records.
Direct Loans are awarded in two
disbursements in an academic year, i.e. one disbursement each
semester for semester-based students. Students in term-based
programs will receive 2 disbursements per semester or one
disbursement for each 8 week term. The money is credited to your
student account and used to pay tuition and fees. If there is a
credit balance after paying tuition and fees, along with room and
board, if applicable, you will receive a Higher One debit card,
bank deposit, or check, depending on which option you selected. It
will be issued within 14 days of the credit balance.
The deadline to accept federal
student loans to ensure they are eligible to disburse is 10 days
prior to the last day of a student’s academic year (or last day of
enrollment). It should be noted that federal loans must be
originated to be eligible to disburse and this process may take up
to 10 days after the loan has been accepted.
Students that choose to reject or
cancel their loan(s) must notify the University in writing within
14 days of the loan disbursement. Loan cancellation may result in a
balance on the account. Students that choose to reject or cancel a
loan must understand that these canceled funds cannot be used to
pay their Saint Leo University account. These students will need an
alternative payment method to cover any remaining educational
A borrower may view loan summary
details at www.nslds.ed.gov
A student borrower’s (or parent
PLUS borrower’s) loan information will be submitted to the National
Student Loan Data System (NSLDS) and can be viewed by the borrower
using his/her PIN number. In addition, the loan information will be
accessible by guaranty agencies, lenders, and institutions
determined to be authorized users of the data system. Information
is available on the borrower’s loan history, including loan type,
loan period, loan amount (and principal), refunds (if any). lender,
and loan servicer. The loan history is reported to a school when
the student files a Free Application for Federal Student Aid
(FAFSA), and the information is updated as the loan history
A student borrower’s enrollment
status is reported to the National Student Loan Data System (NSLDS)
throughout her/his attendance at Saint Leo University.
When a student graduates,
withdraws, or drops to less than half-time enrollment, the
in-school deferment on loan repayment ends. The lender (or loan
servicer) is notified. The borrower will be contacted about
repayment. However, it is the borrower’s responsibility, whether or
not the lender (or loan servicer) contacts him/her, to make loan
When a student borrower
graduates, withdraws, or drops to less than half-time enrollment,
Saint Leo University’s Financial Aid Office will notify the student
borrower to complete online loan Exit Counseling.
The online loan exit counseling
will include information on:
- the effect of the loan on the eligibility of the borrower for
other forms of aid;
- an explanation of the use of the Master Promissory Note;
- the seriousness and importance of the students' repayment
- information on the accrual and capitalization of interest;
- borrowers of unsubsidized loans option of paying interest while
- definition of half-time enrollment and consequences of not
maintaining half-time enrollment;
- importance of contacting appropriate offices if student
withdraws prior to completion of program of study;
- sample monthly repayment amounts;
- the obligation of the borrower to repay the full amount of the
loan regardless of whether the borrower completes program or
completes within regular time for completion and whether or not the
borrower is able to obtain employment upon completion, or is
otherwise dissatisfied with or does not receive the educational or
other services the borrower purchased from the school;
- consequences of default;
- information about the NSLDS and how the borrower can access the
borrower's records; and
- name and contact information for individual the borrower may
contact with questions about the borrower's rights and
responsibilities or the terms and conditions of the loan.
When you are no longer enrolled
at least half-time, your federal loan(s) enters a grace period. A
grace period is a window of time after you leave school when you
aren’t required to make loan payments. The grace period on federal
loans is six months long, beginning from your last day of
enrollment. At the conclusion of your grace period you will be
responsible for making payments on your loan or arranging for your
loan to enter deferment or forbearance. Please be aware, there is
no grace period for Direct PLUS Loans—the repayment period for a
PLUS Loan begins on the day after the final loan disbursement is
Your grace period is a good time
to begin thinking about your loan repayment strategy. You are
encouraged to contact your loan servicer to select a repayment
plan, set up automatic payments, and to update your contact
information. If you are unsure of who your lender is or what
federal loans you borrowed, you can access this information through
National Student Loan Data System.
A student borrower’s repayment
amount will depend on the size of the debt and the length of the
repayment period. A loan repayment calculator is available for
each type of repayment option below.
The repayment options are:
- Standard Repayment: You arrange to pay a fixed
amount each month until your loans are paid in full. Your monthly
payments will be at least $50, and you'll have up to 10 years to
repay your loans.
- Extended Repayment: To be eligible for the
extended plan, you must have more than $30,000 in Direct Loan debt
and you must not have an outstanding balance on a Direct Loan as of
October 7, 1998. Under the Extended repayment plan, you have 25
years for repayment and two payment options: fixed or graduated.
Fixed payments are the same amount each month, as with the standard
plan, while graduated payments start low and increase every two
years, as with the graduated plan below.
- Graduated Repayment: You arrange to pay
smaller amounts initially that increase every two years. The length
of the repayment period is up to ten years. Your monthly payment
will never be less than the amount of interest that accrues between
payments. Although your monthly payment will gradually increase, no
single payment under this plan will be more than three times
greater than any other payment.
- Income Contingent Repayment: This plan gives
you the flexibility to meet your Direct Loan obligations without
causing undue financial hardship. Each year, your monthly payments
will be calculated on the basis of your adjusted gross income (AGI,
plus your spouse's income if you're married), family size, and the
total amount of your Direct Loans. Under the ICR plan you will pay
each month the lesser of:
1. the amount you would pay if you repaid your loan in 12 years
multiplied by an income percentage factor that varies with your
2. 20% of your monthly discretionary income.
If your payments are not large enough to cover the interest that
has accumulated on your loans, the unpaid amount will be
capitalized once each year. However, capitalization will not exceed
10 percent of the original amount you owed when you entered
repayment. Interest will continue to accumulate but will no longer
The maximum repayment period is 25 years. If you haven't fully
repaid your loans after 25 years (time spent in deferment or
forbearance does not count) under this plan, the unpaid portion
will be discharged. You may, however, have to pay taxes on the
amount that is discharged.
- Income-Based Repayment: You arrange monthly
payments based on your income during any period when you have a
partial financial hardship. Your monthly payment may be adjusted
annually. The maximum repayment period under this plan may exceed
10 years. If you meet certain requirements over a specified period
of time, you may qualify for cancellation of any outstanding
balance of your loans.
The Direct loan servicer will
send information about repayment, and you will be notified of the
date repayment begins. However, you are responsible for beginning
repayment on time, even if you do not receive this information.
Remember: Failing to make payments on your loan can lead to
default with severe consequences.
Sample Monthly Loan Repayment
The table below reflects monthly loan repayments under a
standard 10-year repayment plan. Borrowers interested in a plan
that accrues the least amount of interest should stay on a standard
10-year repayment plan.
The table displays monthly repayment amounts for loans with the
following interest rates – 3.4%, 5%, 6.8%, and 7%. The loan amounts
range from $5,000 to $30,000 in increments of $5,000. For example,
if a student borrowed $10,000 at a 5% interest rate, the monthly
payment for principal and interest would be $106 a month for ten
This chart is intended to provide a very general overview of
what a monthly loan repayment schedule could look like. Borrowers
are encouraged to use the Repayment Estimator on the Federal Student Aid
website. The Repayment Estimator can be used to estimate your
federal student loan payments under each repayment plan.
TROUBLE MAKING YOUR
If you have trouble making
payments on your loans, always contact your loan servicer as soon
as possible. Your servicer will work with you to determine the best
option for you. Options include:
- Changing repayment plans.
- Requesting a deferment. If you meet certain requirements, a
deferment allows you to temporarily stop making payments on your
- Requesting a forbearance. If you do not meet the eligibility
requirements for a deferment but are temporarily unable to make
your loan payments, then (in limited circumstances) a forbearance
allows you to temporarily stop making payments on your loan,
temporarily make smaller payments, or extend the time for making
If you stop making payments and
don't get a deferment or forbearance, your loan could go into
default, which has serious consequences.
DEFAULT ON A STUDENT
If you default, it means you
failed to make payments on your student loan according to the terms
of your promissory note, the binding legal document you signed at
the time you took out your loan. In other words, you failed to make
your loan payments as scheduled.
The consequences of default are
severe! The federal government may take action to recover the
- National credit bureaus can be notified of your default, which
will harm your credit rating, making it hard to buy a car or a
- You will be ineligible for additional federal student aid if
you decide to return to school.
- Loan payments can be deducted from your paycheck.
- State and federal income tax refunds can be withheld and
applied toward the amount you owe.
- You will have to pay late fees and collection costs on top of
what you already owe.
- You can be sued.
In many cases, default can be
avoided by submitting a request for a deferment, forbearance, or
discharge and by providing the required documentation. To learn
what actions to take if you default on your loans, see the Department of Education’s Default Resolution Group
A deferment is a period of time
during which no payments are required and interest does not accrue
(accumulate) on a subsidized loan (but it does accumulate on an
Receiving a deferment is not
automatic. You must apply for it by contacting the Direct Loan
servicer. You MUST continue making payment on your loan until you
are notified that your deferment has been granted. If you stop
making payments before the deferment is approved, your loan could
become delinquent or in default.
In-School deferment: While enrolled in an approved graduate
fellowship program or an approved rehabilitation training program
for the disabledEconomic hardship deferment (for up to 3 years):
Unable to find full-time employmentEconomic hardship deferment
(includes Peace Corp Service) (for up to 3 years): Economic
hardship as defined by federal regulations.Military Service
deferment: Borrower is on active duty during a war or other
military operation or national emergency and if the borrower was
serving on or after October 1, 2007, for an additional 180-day
period following the demobilization date for the qualifying
service.Post-Active Duty Student deferment: For a borrower who is a
member of the National Guard or other reserve component of the U.S.
Armed Forces (current or retired) and is called or ordered to
active duty while enrolled at least half-time at an eligible school
or within six months of having been enrolled at least half-time,
during the 13 months following the conclusion of the active duty
service, or until the borrower returns to enrolled student status
on at least a half-time basis, whichever is earlier.
|In-School deferment: While
enrolled at least half-time study at a postsecondary
|In-School deferment: While
enrolled in an approved graduate fellowship program or an approved
rehabilitation training program for the disabled
|Economic hardship deferment (for
up to 3 years): Unable to find full-time employment
|Economic hardship deferment
(includes Peace Corp Service) (for up to 3 years): Economic
hardship as defined by federal regulations.
|Military Service deferment:
Borrower is on active duty during a war or other military operation
or national emergency and if the borrower was serving on or after
October 1, 2007, for an additional 180-day period following the
demobilization date for the qualifying service.
|Post-Active Duty Student
deferment: For a borrower who is a member of the National Guard or
other reserve component of the U.S. Armed Forces (current or
retired) and is called or ordered to active duty while enrolled at
least half-time at an eligible school or within six months of
having been enrolled at least half-time, during the 13 months
following the conclusion of the active duty service, or until the
borrower returns to enrolled student status on at least a half-time
basis, whichever is earlier.
If you temporarily cannot meet
your repayment schedule, and you do not meet the requirements for a
deferment, the loan servicer may grant you forbearance. During
forbearance, your loan payments are postponed or reduced. Unlike
deferment, whether your loans are subsidized or unsubsidized, the
interest continues to accrue (accumulate). You are responsible for
paying it, no matter what kind of loan you have.
Depending on the circumstances,
you may receive forbearance for periods of up to 12 months at a
time for a maximum of three years. You will have to provide
documentation to the Direct Loan Servicer to show why you should be
granted the forbearance. You MUST continue making payment on your
loan until you are notified that your forbearance has been
A loan discharge (cancellation)
releases you from all obligation of having to repay a student loan.
However, it is only under specific circumstances that this is
possible. Two examples are your death or your total and permanent
disability. Also, your loan might be discharged because of the type
of work you do: teaching in a designated low-income school, for
example. In order to qualify for a loan discharge, you must contact
the Direct Loan Servicer.
It is important to remember that
your loan can not be canceled because you did not complete the
program of study at your school (unless you could not complete the
program because the school closed). Also, cancellation is not
possible because you did not like the school or program, or you did
not obtain employment afterwards.
For more information on Loan
Discharge/Cancellation go to Federal Student Aid and search
Discharge/Cancellation at: http://studentaid.ed.gov/repay-loans/#forgiveness.
Loan consolidation is a way for
you to consolidate (combine) multiple federal student loans with
various repayment schedules into one loan. When consolidated, you
can make just one monthly payment. You can consolidate during your
grace period, once you have entered repayment, or during periods of
deferment or forbearance.
With a consolidation loan, your
payments might be significantly lower, and you can take a longer
time to repay (up to 30 years). Also, you might pay a lower
interest rate than you would on one or more of your existing loans.
However, it is important to remember that consolidation
significantly increases the total cost of repaying your loans.
Because you can have a longer period of time to repay, you will pay
more interest. In fact, consolidation can double total interest
expense. So, compare the cost of repaying your unconsolidated loans
with the cost of repaying a consolidation loan.
To qualify for a consolidation
loan or to receive more information about interest rates, contact
your Direct Loan Servicer and read about Loan Consolidation on
Federal Student Aid at: http://studentaid.ed.gov Search
the words Loan Consolidation.
It is important to keep in touch
with your Direct Loan servicer. You must notify your lender (or its
loan servicer) when you:
- withdraw from school
- drop below half time status (6 credits=half time)
- change your name, address, or Social Security number
- transfer to another school
Failure to keep updated
information with your loan servicer could cause your loan to go
into default or to be sent to a collection agency.
- More information explaining Federal Financial Aid can be found
- More information on Direct Loans go to the U.S. Department of
Education’s Student Loans website at www.studentloans.gov
If you have additional questions
contact the Saint Leo University Financial Aid Office.